Bitcoin and the cryptocurrency market have hit a local bottom and are entering a recovery phase. Altcoins are feeling more confident than the main digital asset and are gradually renewing local highs. It is likely to be altcoin season in the first quarter of 2022. The rise in popularity of alternative coins coincides with the mainstream desire to tighten regulation of cryptocurrencies.
Spain and Singapore are following the US and Switzerland in tightening regulation of digital assets. The countries' regulators decided to tighten advertising policies for digital assets in public places, social media, print and electronic media. The decision was taken to protect citizens from investing in dubious financial products. Advertisers in Spain will be required to warn users that the cryptocurrency industry is unregulated and could lead to financial losses. Overall, this news can be both educational and motivational. After all, the cryptocurrency market's consumer audience will increase significantly when regulations governing cryptocurrency transactions are implemented.
Crypto market continues to grow and develop in South America. The authorities in Rio de Janeiro have decided to invest 1% of the budget in Bitcoin. According to the mayor, the city will become a bitcoin hub in the future, with benefits for the digital asset ecosystem. The government is also working on benefits for citizens willing to pay with Bitcoin. It is likely that in 2022 South America will become an unofficial center of cryptocurrency adoption, though there will be no proper legal regulation.
The news that another major player could soon enter the NFT market has caused a stir. Walmart has signalled plans to develop its own cryptocurrency and non-fungible tokens (NFTs). The company also wants to be a part of the meta universe. All the major players are gradually entering the digital markets, improving the reputation of the cryptocurrency industry and encouraging their customers to join the sector. Investments of other platforms have also surged to $3 billion, indicating the growth of the NFT sector.
As for the technical picture, the altcoin market is likely to see a boom. The altcoin index has reached a score of 82 points, indicating great potential for growth in the near term. Among the main contenders for growth are ETH, ADA and DOT, which reached local highs, posting gains in the last seven days. However, when assessing the prospects for the altcoin market, one should always pay attention to bitcoin, as its impact on the entire market is still decisive.
Bitcoin is near the support area at $42.1k. The coin has completed a corrective move and entered a consolidation phase. The price movement is entirely consistent with the May fall and further consolidation in a wide range. The technical indicators also show that the current situation is flat. MACD continues to move under the zero mark and stochastic is declining into the safe zone. The RSI remains sideways in the bullish zone, indicating average buying activity. This suggests that the major cryptocurrency has no prerequisites for growth or decline. This will push altcoin quotations higher, and therefore the possibility of an alt-season increases significantly.
